Microsoft pushes Windows toward hybrid intelligence with MXC GA, llama.cpp in Windows ML and HydraFusion routing to local models

What changed

Microsoft outlined its Windows hybrid-intelligence roadmap on October 7. Microsoft Execution Containers (MXC) is now generally available on Windows 11 with runtime file and network policies for agents, while Windows ML is adding llama.cpp support. Microsoft is also bringing the 137B-total/6.8B-active MAI Code 1.1 Flash to local PCs in 3-bit form and plans RTX Spark support for DeepSeek V4 Flash and an upcoming NVIDIA Nemotron model. GitHub HydraFusion will enter experimental preview later in October across the Copilot app, CLI and VS Code so tasks can route between local and cloud models; Copilot local context, actions and models are planned to roll out over coming months.